Qualification criteria for being an 'informant' under the Income ...

Tax informant reward denied for known deposit info due to lack of undisclosed income detection.

Case Laws     Income Tax

November 7, 2024

Qualification criteria for being an 'informant' under the Income Tax Informants Reward Scheme, 2018. The key points are: the information provided by the petitioner regarding cash deposits and repayment of deposits in violation of Sections 269SS and 269T was already known to the Assessing Officer during the assessment proceedings. Therefore, it cannot be considered as 'undisclosed income and wealth' eligible for reward under the Scheme. Additionally, the information did not lead to the detection of 'substantial tax evasion', which is a prerequisite for receiving the reward. The High Court held that since the transactions were reflected in the books and examined during assessment, the information provided by the petitioner was not new or undisclosed. The Tribunal's findings also did not support allegations of undisclosed income and tax evasion. Consequently, the petitioner's claim for a reward was rejected.

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